Why we’re taking FGs N5bn bailout loan – Kwara


The Kwara State Government has stated that the N5bn Federal Government bailout loan is the cheapest and most efficient means of paying accumulated arrears of salaries and allowances owed to primary school teachers and other local government employees.
The loan also covers arrears of pensions and gratuities owed to retired local government workers, some of which go back several years.
In a statement, the State Government said that the N5bn loan, when received, will bring relief to local councils, their staff and retirees as federal allocations are currently inadequate to meet salary, pension and gratuity obligations at state and local government levels.
A breakdown of the N5bn liability shows that as at July 2015, the total salary arrears for Local Government workers was N2, 012, 999, 522.40, while salary arrears for primary school teachers stood at N2, 143, 414, 338.55.
Total LG Pension arrears stood at N523, 160, 259.38 while arrears for LG’s Statutory Contribution to Kwara State University (KWASU) is N70, 464, 259.89 Outstanding payments for sundry services was put at N267, 806, 538.40.
Providing further clarification, the state government said it is clear from the figures that the N3.6bn combined June and July allocation to the 16 local government councils was inadequate to meet current and outstanding salary and pension arrears not to talk of development projects.
The State Government therefore expressed confidence that the N5bn loan bailout will clear all outstanding arrears and provide the local government councils with affordable repayments so that they will continue to meet future salary, pension and project obligations.
The statement also reiterated that the State Government does not interfere with local government council funds as all due allocations are released after statutory deductions for teachers’ salaries, pensions and gratuities, teaching service allowance, statutory contributions to KWASU, training, and sundry support services. It also stressed that …Read More

Source:: New Mail